KHA Comments on FFY 2020 Proposed IPPS Rule
Friday, May 31, 2019 1:45 PM
On May 30, KHA submitted comments to CMS on the FY 2020 proposed Medicare inpatient prospective payment rule. The proposed rule includes changes that will increase the wage index for hospitals in the lowest 25th percent, which is all of Kentucky’s rural PPS hospitals. Specifically, this increase would be half of the difference between the hospital’s pre-adjustment wage index and the 25th percentile (0.8482). The increase is budget neutral, meaning that it will be funded by reducing the area wage index of hospitals above the 75th percentile (more than 1.0351). The change provides the greatest benefit to hospitals located in the East South Central census region (which includes Kentucky) while reducing the wage index in the Pacific and New England states.
KHA has long advocated for action to address the widening gap between low and high wage index areas. Kentucky has the 36th lowest rural wage index and no urban area has a wage index greater than 1.0.
The change is estimated to raise Kentucky hospital payments by $4 million. It is a good first step toward achieving a long-term correction that could raise the wage index for all Kentucky’s hospitals and something that we hope will remain in the regulation when it is finalized.
Since the states whose wage index will be reduced are expected to strongly oppose the rule, it is important for CMS to receive a large volume of letters and comments in support of the change. KHA is working in a coalition of other positively impacted states to generate as many favorable comments as possible.
Hospitals are urged submit a comment in support of this wage index change before the due date of June 24. Your comments should be submitted electronically at https://www.regulations.gov . You must refer to file code CMS-1716-P in your comment letter and you can use this code in the search field to identify this regulation when you submit your comments on the site.
A copy of KHA's full comments is available for members at http://www.kyha.com/policy-issues.
If you have any questions, please contact Nancy Galvagni at KHA (firstname.lastname@example.org).